THE Securities and Exchange Commission (SEC) has warned Nigerians against the financial risk of transacting with an online investment platform known as Glorious Wealth Fund (GWF).
In a statement on Thursday, December 4, the SEC said the platform was not registered or licensed to carry out any capital market activity in Nigeria, contrary to claims that it offers investment in Nigerian stocks and other financial instruments under the commission’s supervision.
“The attention of the Securities and Exchange Commission (SEC) Nigeria has been drawn to the activities of an online investment platform known as and operating under the name Glorious Wealth Fund (GWF) through its website gloriouswealthfund.com,” part of the statement reads.
“The operators of this platform claim to offer investment services in Nigerian stocks and other financial instruments, purportedly under the supervision of the SEC. The commission hereby informs the public that the Glorious Wealth Fund (GWF) is not registered or licensed by the Securities and Exchange Commission (SEC) Nigeria to carry out any form of capital market activity in the Nigerian capital market.
It urged the public to note that any claim by GWF it did not supervise, license, or approve is false, misleading, and fraudulent.
The commission said it had received complaints from investors who were unable to withdraw funds deposited on the platform, noting that the activities bore traits of an “illegal investment scheme designed to defraud unsuspecting Nigerians.”
“Accordingly, the public is advised to refrain from dealing with GWF, as any person who engages with the entity or its representatives does so at his/her own risk.
“The commission uses this medium to reiterate that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to financial risk, including fraud and potential loss of investment.”
The agency urged the public to verify the registration status of companies and entities offering investment opportunities on its portal before transacting with them.
This is not the first time the SEC has issued such an advisory against unverified investments in securities.
In 2023, the commission blacklisted six e-commerce companies for operating without registration and for engaging in dubious financial services not authorised by the commission.
The unregulated online trading platforms the SEC has blacklisted are Prime Invest, FXBoxed and New Finance LLC & New FX Limited.
Others are Axi24, Evolve Consulting LCC, and Trust Fund Mining Global Pty Ltd.
The commission advised members of the public to adopt “the greatest” diligence in making investment choices.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.